Abdul Rahman, Nora Azureen and Kosim, Zunarni and Siew, Goh Yeok (2017) Financial Health: Examining the Ability of Malaysian Household in Servicing Their Debts. International Journal of Applied Business and Economic Research, 15 (20). pp. 51-58. ISSN 0972-7302

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Abstract

This study is motivated by the persistent increased in household debts among Malaysian. The increasing trend of household debts raised concerns about the ability of the households to service their debts; especially when bankruptcies rates among Malaysian increase rapidly. Hence, this study seeks to examine the ability of the households in servicing their debts by looking at the association between loan features and types of household loans, and the post-loan debt service ratio. Using estimated logit model, the results show that household loans are associated with different loan features, which also indicates the ability condition of the household to service their debts. The post-loan debt service ratio shows that borrowers of certain types of loans have difficulties or less ability to service their debts. Further, the socio-demographic factors present the association of the borrowers’ characteristics with types of household loans. The results show that the ability to repay debts is different between gender, races, education and employment. The study is conducted on households in three northern states of Malaysia

Item Type:	Article
Uncontrolled Keywords:	household debts, debt service ratio, Malaysia
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	12 Dec 2018 06:18
Last Modified:	12 Dec 2018 06:18
URI:	https://repo.uum.edu.my/id/eprint/25295

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